NTPC Green Energy Ltd’s IPO subscribed one-third of the total shares being offered on the first day of the bidding. It received applications for 19,46,53,968 shares against the available 59,31,67,575 shares, according to the NSE data.
The shares reserved for retail investors were oversubscribed, with almost 1.5 times what was offered, according to the data. Earlier, the company successfully raised Rs 3,960 crore from anchor investors.
The Rs 10,000-crore share sale consists entirely of fresh equity shares issuance without any offer-for-sale (OFS) component. 75 percent of the shares are reserved for qualified institutional buyers, 15 percent for high net-worth individuals, and 10 percent for retail investors.
The issue with a lot size of 138 shares is open from November 19 to 22, with shares priced between Rs 102-108.
The company plans to utilise Rs 7,500 crore from the IPO proceeds to settle outstanding loans of its subsidiary NTPC Renewable Energy Ltd (NREL), with the remaining amount allocated for general corporate requirements.
NTPC Green Energy, backed by NTPC, is a sizable renewable energy public sector enterprise (excluding hydro) in terms of both operating capacity and power generation.
As of June 30, 2024, NTPC Green’s total portfolio stood at 14,696 MW, which includes 2,925 MW of operational projects and 11,771 MW of contracted and awarded projects. Additionally, the company has an additional 10,975 MW in the development pipeline, bringing the overall capacity to 25,671 MW.
Over the next 6 to 9 years, the company plans to commission 14 GW of pumped hydro capacity, compared to the current installed capacity of 3.3 GW. Currently, 5.9 GW is under construction, with an additional 10.8 GW in the pipeline, and the company further aims to reach 60 GW of renewable capacity by 2032.
In late October, NTPC Green Energy obtained approval from the capital markets regulator, SEBI, to raise funds through an initial public offering (IPO), as the company had submitted its IPO filings to the regulator on September 18.